Newmo pulls in $135M Series B as it chases driverless taxis by 2028
What's the deal? DG Daiwa Ventures (DGDV)Dealroom has a profile for this one. Try Dealroom → has joined the Series B round of Newmo, a Tokyo-based startup that operates taxi fleets and develops autonomous taxi technology. The round — a US$160M (roughly $135 million) raise led by KDDIDealroom has a profile for this one. Try Dealroom → — brings Newmo's total funding to US$313.1M. DGDV is one of several new investors backing the company.
What's the endgame? Newmo runs about 1,900 taxis across six regions in Japan, using those operations to collect driving data and test vehicles in real conditions. It is targeting limited-area commercial autonomous service in 2028 and, longer term, a 1,000-vehicle fleet.
Why now? Japan's taxi sector faces a deepening driver shortage — the number of corporate taxi drivers fell about 14.2% over five years. A government transport plan approved in January 2026 set a target of 10,000 autonomous-service vehicles by fiscal 2030, pushing commercialization forward.
What's DGDV's angle? The firm said it values Newmo's operating base and management team, and plans to use its network of domestic policymakers and overseas technology players to support growth. "Newmo, since its founding, has steadily pursued the grouping and integration of taxi operators, bringing change to a regulated industry as a startup," said DGDV's Kota Shindo (translated from Japanese).
What could go wrong? Commercialization remains a goal, not a proven business. Regulatory approval, safe operations, and viable economics are still hurdles — and competition is building, with Waymo and local partners targeting a driverless-taxi launch in Tokyo in 2027.
The signal: The scale of the raise reflects investor conviction that autonomous taxis are becoming essential infrastructure for an aging, shrinking workforce. Pairing Japan's taxi operations with homegrown self-driving AI is the bet — and the clock is now set for 2028.
Read more: prtimes.jp
Image credit: hans-johnson
